INFLATION IS OUR FRIEND

[Ready2Downsize]

Raising rates is not going to dampen consumer spending as it did in the 70's.

At that time there was no government handouts.

It was shameful to be on welfare and you'd do anything to avoid it.

There was not as many two income households so if things were tight u HAD to cut back.

Credit cards had very low limits. (I'm talking $300 per dept store, so you got lots of cards and to charge more u had to pay off what you owed or go to another store). U couldn't just charge up the wazoo. You HAD to cut spending to make ends meet in those days or write bad checks but eventually that wasn't going to work.

 

[usctrojancpa]

This sums it up...

 

[irvinebullhousing]

This sums it up...

Load up on I-Bond. The U.S. dollars wrecking ball even crush shiny metals.

 

[Liar Loan]

Raising rates is not going to dampen consumer spending as it did in the 70's.

At that time there was no government handouts.

It was shameful to be on welfare and you'd do anything to avoid it.

There was not as many two income households so if things were tight u HAD to cut back.

Credit cards had very low limits. (I'm talking $300 per dept store, so you got lots of cards and to charge more u had to pay off what you owed or go to another store). U couldn't just charge up the wazoo. You HAD to cut spending to make ends meet in those days or write bad checks but eventually that wasn't going to work.

I recently heard that during the pandemic, local high schools were handing out EBT cards, not based on income, but to everybody.  It seems we have an entire generation being conditioned to accept welfare now.

 

[Ready2Downsize]

Raising rates is not going to dampen consumer spending as it did in the 70's.

At that time there was no government handouts.

It was shameful to be on welfare and you'd do anything to avoid it.

There was not as many two income households so if things were tight u HAD to cut back.

Credit cards had very low limits. (I'm talking $300 per dept store, so you got lots of cards and to charge more u had to pay off what you owed or go to another store). U couldn't just charge up the wazoo. You HAD to cut spending to make ends meet in those days or write bad checks but eventually that wasn't going to work.

I recently heard that during the pandemic, local high schools were handing out EBT cards, not based on income, but to everybody.  It seems we have an entire generation being conditioned to accept welfare now.

Exactly. The government will always be there to bail you out. How much more debt is the US going to take on with higher and higher servicing costs? I don't know. I HATE debt. I know I could have made a lot leveraging my house, buying rentals, etc. But no debt (cars, house, school etc) means no one can take my things from me.......... ever unless I don't pay the property taxes.

 

[morekaos]

Costco is doing their part ;D ;D >


?Lightning just struck me?: Why Costco?s CFO says the price of the $1.50 hot-dog-and-soda combo is ?forever?

?Some businesses that are doing well with margin ... those things help us be more aggressive in other areas, or, as you mentioned, hold the price on the hot dog and the soda a little longer ? forever,? he said.
Other Costco food court items have increased in price recently, including the popular chicken bake which went up from $2.99 to $3.99 in July.
The price of a 20-ounce soda also rose from 59 cents to 69 cents over the summer.https://www.cnbc.com/2022/09/26/cos...rce=iosappshare|com.apple.UIKit.activity.Mail

 

[irvinebullhousing]

RAY DALIO @RAYDALIO


As John Maynard Keynes is credited with saying: ?When the facts change, I change my mind. What do you do, sir?? Along these lines, the facts have changed  and I?ve changed my mind about cash as an asset: I no longer think cash is trash.


Even the greatest investor, recognized the power of green back. The almighty US dollars is still the king.

 

[morekaos]

This is as close to “Inflation is your friend” as your gonna get…let them eat ice cream…

 

[ChiKid24]

I'll take the under on low 7s all day. This is the second consecutive month where CPI-U declined on a month/month basis and the pace of the decline accelerated. June was 296.311, July was 296.276 (down 0.035 from June), and now August is 296.171 (down 0.105 from July). Given the trend and the continued fed tightening, you would assume month/month declines continue and likely accelerate further. But even if it stays flat at 296.171 for the rest of the year, we would be at 6.2%. It would take a pretty significant direction change for us to be in the low 7s.

Today's CPI print shows Y/Y inflation of 7.1%, but declined on a month/month basis. No doubt in my mind we'll be sub 7% when December numbers come out next month. If you look at the 6-month trend, we're only 1.85% above where we were in May. That implies a 3.7% annual inflation number. iBonds are measured on 6-month changes in CPI. So the juicy rates we've seen in the last year are going to be much lower when they get repriced in April. If we stay at these levels, the rate will be <1%.

 

[morekaos]

It’s not just inflation…it’s a giant dose of stupidity…knew it over a year ago! All they missed was magnitude…not 50%, more like 300%

Study: Cage-Free Laws Will Spike Egg Prices​

Feb. 16, 2022
A California law mandating that all eggs sold in the state come from cage-free chickens supposedly will drive up the cost of eggs nationwide by more than 50%.

Study: Cage-Free Laws Will Spike Egg Prices

A California law mandating that all eggs sold in the state come from cage-free chickens supposedly will drive up the cost of eggs nationwide by more than 50%.

www.foodprocessing.com

 

[morekaos]

Your $100,000.00 feel good box? You pay for it one way or another. I for one drive a 1990 Full size Ford Bronco, Restored, that gets about 9 miles to the gallon but when I bought it it only cost me $3800.00 so I think I'm still ahead of the game. ;D ;D

Turns out to be one of my better inflation investments…

Old's cool! 1990s cars have soared in value by up to 78%, with Ford Broncos, Buick Roadmasters, Nissan 300ZXs and Madza Miatas among sought-after retro models​

Between 2015 and 2018, buyers paid an average of $13,375 for 1990s Ford Broncos, Hagerty found. Now those Broncos - which went out of production in the latter part of the decade but enjoyed a rerelease just a few years ago - going for double that amount.

Cars from 1990s have soared in value by up to 78%, new report shows

Values for '90s cars have rocketed an average of 78 percent over the past three years, according to Brian Rabold, vice president of automotive intelligence at Hagerty, a firm that monitors the car market.

www.dailymail.co.uk

 

[ChiKid24]

Another M/M decline in CPI last week. Y/Y inflation down to 6.4%, and 6-month trend is only 0.1%. Given this trend and where CPI currently sits, the iBonds party is over. The next reset will be close to 0% variable. Silver lining is there will be minimal if any early redemption penalty if you wait to liquidate after the lower reset. Short-term treasuries looks like a better place for the bond allocation of my portfolio.

 

[morekaos]

Don’t get sucker punched…

‘Too Good to Be True’ Jobs Report Draws Skeptics on Data Quirks​

• Bloomberg Economics said payrolls surged on seasonal factors
• Others played that down, noting figures looked ‘pretty clean’

‘Too Good to Be True’ Jobs Report Draws Skeptics on Data Quirks

Economists are scratching their heads as to whether the US labor market is truly as strong as the latest employment report indicates or if wonky adjustments are getting in the way.

www.bloomberg.com

 

[morekaos]

...and the boy king is trying to spin the blame on the "evil" carbon producers when it really is the shippers fault for dragging their anchor across a perfectly good pipeline. I like how they use the panic poRn gallons figure instead of the barrels (only 3000 BARRLELS). To put that into perspective the Deep Water Horizon spill (quickly forgotten) was 3.2 MILLION BARRELS, EXXON VALDES? 257,000 BARRELS. The boy king wants to stop ALL oil drilling in Californian, which would only drive energy prices higher and cause further inflation. The fools are truly in charge.

The truth always comes out in dollars and cents….it will here too

The shipping companies whose boats may have damaged an underwater oil pipeline — and thus caused a major spill off the Southern California coast in 2021 — have agreed to pay the pipeline company nearly $100 million.
The settlement does not include an admission of liability, my colleagues Laura J. Nelson and Hannah Fry report. In other coastal news, a new study finds that sewage spilling across the U.S.-Mexico border through the Tijuana River isn’t just fouling San Diego County beaches — it also gets into the air, potentially harming a lot more people, per Joshua Emerson Smith at the San Diego Union-Tribune.



https://www.latimes.com/california/...-million-over-anchor-strikes-in-o-c-oil-spill

 

[morekaos]

I warned that this was coming, can’t print that much money and not pay the price. Rates are going higher….

Fitch downgrades U.S. long-term rating to AA+ from AAA​

• Fitch Ratings cut the United States’ long-term foreign currency issuer default rating to AA+ from AAA.
• The agency had placed the country’s rating on negative watch in May, citing the debt ceiling fight in Washington.
• “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said.
• U.S. stock futures opened lower Tuesday evening after the downgrade.

Fitch downgrades U.S. long-term rating to AA+ from AAA

The rating agency cited "expected fiscal deterioration over the next three years."

www.cnbc.com

 

[morekaos]

We are still drowning…still can’t touch the bottom but on a good note…its 2 inches shallower where we are.

July CPI report shows inflation gauge rose 3.2%, less than expected

· The consumer price index rose 3.2% from a year ago in July, slightly below expectations. The core CPI ran at a 12-month rate of 4.7%, also below the estimate. Both measures were up 0.2% on the month.

· Almost all of the monthly inflation increase came from shelter costs, which rose 0.4% and were up 7.7% from a year ago.

· Real wages adjusted for inflation increased 0.3% on the month and were up 1.1% from a year ago.

· While inflation has come well off its 40-year highs of mid-2022, it is still considerably above the 2% level where the Federal Reserve would like it.

https://www.cnbc.com/2023/08/10/cpi-inflation-july-2023-.html

 

[morekaos]

This speech is coming soon from the White House…Burn dollars to fight inflation!..


https://www.nbc.com/saturday-night-live/video/jimmy-carter-on-inflation-cold-open/3007609

 

[morekaos]

Whos the more foolish?...the fool or the fool that follows him(her)?

Yellen says the administration is fighting inflation, admits she was wrong that it was ?transitory?

Treasury Secretary Janet Yellen told CNBC that the White House has several strategies that will reduce inflation she conceded is too high for Americans.
In a separate interview Tuesday, Yellen admitted she was wrong when she called inflation ?transitory? last year.
https://www.cnbc.com/2022/06/01/yel...its-she-was-wrong-that-it-was-transitory.html

So we know what’s actually going to happen…right?

Yellen ‘Feeling Very Good’ About Soft Landing for US Economy
· Treasury secretary hails data showing slowing price gains
· Yellen also downplays threat from China-led BRICS expansion
https://www.bloomberg.com/news/arti...od-about-us-sticking-a-soft-landing#xj4y7vzkg

 

[morekaos]

Inflation is about to explode?now that this (Nobel prize winning) fool says it won?t?. ;D ;D >

Paul Krugman: Inflation is about to come down

The inflation report for March came in hot, as expected: Consumer prices are up 8.5 percent over the past year. But more than two years into the pandemic, we?re still living on COVID time, where things can change very fast ? so fast that official data, even about the recent past, can give a misleading picture of what?s happening now.

In this case, the consumer price index ? which roughly speaking measures average prices over the month ? probably missed a downward turn that began in late March and is accelerating as you read this. Inflation will probably fall significantly over the next few months.
https://www.berkshireeagle.com/opin...cle_e873cfea-ba9f-11ec-b933-9baed88e0d60.html

Now we know inflation is not done with us….even idiots win Nobels

The Nobel Foundation Should Ask Paul Krugman For Its Award Back

‘The war on inflation is over,” wrote Paul (Nobel Prize-Winning-Economist) Krugman last week in a post on X. “We won, at very little cost.” The only thing missing was a giant “Mission Accomplished” banner.

But like the unfinished Iraq war that George W. Bush bragged about from the deck of the USS Abraham Lincoln, the inflation battle is far from over. Krugman’s reputation as an economist, on the other hand, should be put in a body bag and shipped to Sweden, along with his Nobel Prize money.

Krugman was mocked for his claim about inflation, and for good reason. To show how we’d allegedly won the war, he had to strip out food, energy, shelter, and used cars. In other words – most of the stuff that people spend money on day to day.

The war on inflation is over. We won, at very little cost pic.twitter.com/opumf3nEvL

— Paul Krugman (@paulkrugman) October 12, 2023

When you do that, the remaining basket of goods went up by just 2.8% year-over-year this September, down from a 6.7% hike the year before.

No one should be surprised at Krugman’s latest embarrassment. He has been consistently and wildly wrong about inflation for years. Throughout 2021, he told readers that inflation was nothing to worry about. He started early, reassuring the public in January of that year that “the Fed can easily contain any pickup in inflation.”

He extended his losing streak in 2022, such as when he said in April of that year that “inflation will probably fall significantly over the next few months.” It went up the next two months, reaching a peak of 9.1% in June, and was still above 6% by January of this year. It didn’t reach 3% until this June and then started climbing again.

https://issuesinsights.com/2023/10/...n-should-ask-paul-krugman-for-its-award-back/

 

[Liar Loan]

The trajectory of current inflation is eerily similar to the trajectory of 1970's inflation. Will the renewed Middle East war lead to a new round of oil shocks?